EURUSD dipped to fresh multi-week lows around 1.1835 earlier in the day before a strong bounce
EURUSD
Risk sentiment has improved somehow following losses on Wall Street and mixed session in Asia, sending the safe-haven dollar lower across the board on Tuesday. EURUSD dipped to fresh multi-week lows around 1.1835 earlier in the day before a strong bounce that took the prices to the 1.1910 area. Now, the common currency needs to confirm the latest recovery above this level on a daily closing basis. Otherwise, fresh losses could be expected after a pause should bond yields surge again. On the four-hour charts, the pair is nearing the descending 20-SMA (today at 1.1920). if this moving average gives up any time soon, the euro would target the 1.1950 intermediate resistance on the way towards the 1.2000 psychological handle.
GBPUSD
GBPUSD is trading in the positive territory on Tuesday but still lacks upside momentum to turn the 20-DMA back into support. The pair was last seen changing hands around 1.3870, off intraday highs registered at 1.3900. This level now represents the immediate target for sterling bulls. As long as the prices stay below it, downside risks persist despite the current bullish bias. On the downside, the immediate support is located at 1.3820, followed by the 1.3800 figure. In a wider picture, the cable remains within a broader uptrend following a gradual rejection from long-term tops seen above 1.4200 last month. On the shorter-term timeframes, the technical picture looks slightly bearish for the time being.
USDJPY
USDJPY rallied to fresh mid-2020 highs in the 109.23 area earlier in the day before entering the negative territory amid broad-based downside correction in the greenback. Of note, the pair managed to bounce from intraday lows around 108.55, to trim losses in recent trading. As such, it looks like the downside pressure would be limited, while upside risks persisting despite the recent correction. On the four-hour charts, the dollar remains above the ascending 20-SMA, suggesting the bearish risks are still too modest to take the prices substantially lower at this stage.
NZDUSD
The Kiwi turned positive on Tuesday following four days of losses. The pair has already erased yesterday’s losses as the prices derived support from the 0.7100 figure. NZDUSD was last seen trading around 0.7160, struggling to decisively target the 0.7200 barrier so far. On the negative side, the prices stay below the 20-DMA that has turned into resistance during the slide seen last week. On the hourly charts, the pair is now stuck between the 20- and 100-SMAs, struggling to keep a strong upside bias. As such, the current bounce looks fragile, with downside risks persisting despite a local bearish correction surrounding the greenback.
USDCAD
USDCAD continues its retreat from local peaks seen around 1.2735 late last week. Today, the pair dipped below the 20-DMA, down to the 1.2600 figure that has been acting as support so far. If this level withstands the current selling pressure, a bounce could be expected in the short term. In this scenario, the mentioned moving average (today at 1.2650) will come back into market focus. The daily RSI is pointing slightly lower in the neutral territory, suggesting the bearish potential is limited for the time being. On the hourly charts, USDCAD has settled below the key moving averages while the RSI is nearing the oversold territory, which implies that the prices could stay on the defensive in the immediate term, but a bounce could be expected soon.
